HAPPY EARTH DAY

22nd April 2021

Don’t let a scammer enjoy your retirement!

Scammers are targeting pension pots of all sizes. Make sure you know how to spot the warning signs and how to keep your pension safe.

Pension scams can be hard to spot. Scammers can be articulate and financially knowledgeable, with credible websites, testimonials and materials that are hard to distinguish from the real thing.

How pension scams work

Scammers usually contact people out of the blue via phone, email or text, or even advertise online.

Scammers design attractive offers to persuade you to transfer your pension pot to them (or to release funds from it). It is often then:

• invested in unusual and high-risk investments like overseas property, renewable energy bonds, forestry, storage units;
• invested in more conventional products, but within an unnecessarily complex structure which hides multiple fees and high charges; or
• simply stolen outright.

The warning signs

Scam offers often include:

• Free pension reviews
• Higher returns - guarantees they can get you better returns on your pension savings
• Help to release cash from your pension, even though you’re under 55 (an offer to release funds before age 55 is highly likely to be a scam).
• High pressure sales tactics - the scammers may try to pressure you with ‘time limited offers’ or even send a courier to your door to wait while you sign documents.
• Unusual investments - which tend to be unregulated and high risk, and may be difficult to sell if you need access to your money.
• Complicated structures where it isn’t clear where your money will end up.
• Long-term pension investments – which mean it could be several years before you realise something is wrong.

4 simple steps to protect yourself from pension scams

Step 1 - Reject unexpected offers

If you’re contacted out of the blue about a pension opportunity, chances are it’s high risk or a scam. If you get a cold call about your pension, the safest thing to do is to hang up - it’s illegal and probably a scam.

Be wary of offers of free pension reviews. Professional advice on pensions is not free – a free offer out of the blue from a company you have not dealt with before is probably a scam.

And don’t be talked into something by someone you know. They could be getting scammed, so check everything yourself.

Step 2 - Check who you’re dealing with

• Check the Financial Services Register to make sure that anyone offering you advice or other financial services is authorised by the Financial Conduct Authority (FCA), and they are permitted to provide those services in relation to pensions. If you need any help checking, call the FCA Consumer Helpline on 0800 111 6768.

• Check they are not a clone - a common scam is to pretend to be a genuine FCA authorised firm (called a ‘clone firm’). Always use the contact details on the Register, not the details the firm gives you.

Step 3 - Don’t be rushed or pressured

Take your time to make all the checks you need – even if this means turning down an ‘amazing deal’. Be wary of promised returns that sound too good to be true and don’t be rushed or pressured into making a decision.

Step 4 - Get impartial information or advice

You should seriously consider seeking financial guidance or advice before changing your pension arrangements.

• The Pensions Advisory Service - provide free independent and impartial information and guidance.

• Pension Wise - If you’re over 50 and have a defined contribution pension, Pension Wise offers pre-booked appointments to talk through your retirement options.

• Financial advisers - It’s important you make the best decision for your own personal circumstances so you should seriously consider using the services of a financial adviser. If you do opt for an adviser, be sure to use an adviser that is regulated by the FCA and never take advice from the company that contacted you or from someone they recommend, as this may be part of the scam.

If you suspect a scam, report it

Report to Action Fraud - If you suspect a scam you should report it to Action Fraud on 0300 123 2040 or at www.actionfraud.police.uk.

If you've agreed to transfer your pension and now suspect a scam, contact your pension provider straight away. They may be able to stop a transfer that hasn't taken place yet. If you are unsure of what to do contact The Pensions Advisory Service for help on 0800 011 3797.

Be ScamSmart with your pension. To find out more, visit www.fca.org.uk/scamsmart

As we hopefully move towards the beginning of the end of a very significant time for the world, it is perhaps a good moment to reflect on how important health is to everyone!
 
I would like to thank all our stakeholders – our clients, our staff and our suppliers, for helping us through the last 12 months.
 
Surprisingly, I have a strong degree of optimism for the future. I believe that priorities have changed for the better and the world has a chance to reset itself.
 
The reopening of offices and shops will reflect this rebound and certainly many of our business clients are seeing an excellent outlook.
 
Stock markets are remaining positive, and our portfolios have shown significant progress and investment returns. A steady move towards more sustainable companies will be good for everyone.
 
The commercial property market has had a tough pandemic and we have had to work hard to help some of our tenants through. A few have, of course, not survived. However, as we near the end of another very strict lockdown, we are seeing more activity. Unfortunately, the government have further extended our ability to take action on unpaid rents until the end of June.
 
On the positive side we are seeing some excellent purchase opportunities and are looking to benefit from this as we did during the credit crisis 10 years ago.
 
Achieving income solutions for our clients in a virtually zero interest rate environment is still one of our priorities.
 
The Lewis Master Trust has survived well and now looks after assets of over £42 million, with over 160 employers choosing to use our scheme as the solution for their staff pensions. Our hard-won Pension Regulator approval is key to our future growth.
 
While we will all be grateful to get back to the things we enjoy and the people we love I find myself asking, isn't this a great opportunity to embrace the innovation and positive changes of the last few months?  Like many others our team have pulled together, adapted and overcome challenge after challenge. We have grown or should I say been stretched in a way we never thought we could weather but here we are, a little older, standing strong ready for the future and whatever it may bring.
 
As a firm we are committed to providing you, our clients, with the best possible service and advice. While we always have had an eye to utilising technology for our mutual benefit, we are determined to build on the lessons learned and you will see technology improvements from us in the future, that will help us work smoothly and efficiently together.
 
We will continue to invest in our future so we can be there for yours.

Stay well and best wishes

Tim Lewis

With house prices locally and across the South of England so strong and interest rates so low, buying rather than renting is still the right way forwards for our young adult children. We have worked with some lenders to achieve an excellent solution, whereby your child owns the property, but you join them on the mortgage to allow them to borrow enough to buy a property.

A Joint Borrower, Sole Proprietor (JBSP) is a type of mortgage where not all parties are legal owners of the property. For example, a parent can help their child by joining the mortgage and adding their income to increase borrowing, but without being named on the title of the property. 
 
Key Points

• There are no restrictions around the relationship between the main borrower and the other parties, so this can be a relative/friend etc
• The main borrower must reside in the property purchased and the supporting borrowers must not reside in the property
• The maximum loan to value is 85% (subject to usual criteria)
• The maximum term will be based on the oldest income-providing applicant

Please note: All parties will be required to obtain independent legal advice. 

We are determined to innovate to help you and your family.

Should you be interested in finding out more on JBSP mortgages, please click the button below and we will be in touch. 

Stay well & best wishes

Tim Lewis